A SpiceJet passenger aircraft taxis on the runway at the airport next to a slum area in Mumbai December 19, 2014. Reuters

The development assumes significance as the high ATF prices have dented the Indian airline sector with almost all players reporting losses for the first quarter of 2018-19.

Currently, fuel prices constitute 50-55 percent of the overall operations cost of domestic airlines. India's ATF prices are one of the highest in the world due to the addition of state levies and taxes.

The fuel is not under the GST ambit like the bunker fuel used for the shipping industry.

Accordingly, a cabinet note on the standardization, use and policy of biofuel blended with ATF will be prepared soon, said Road Transport and Highway Minister Nitin Gadkari at the media briefing after the arrival of the flight.